Florida Born Burger Chain Falls To Bankruptcy

Back in 2011 this restaurant was chef founded in Lauderdale-by-the-sea and committed to using fresh, all-natural quality ingredients and earned Best Fast Casual Restaurant” in USA Today’s 10 Best 2021, 2022, and 2023 Readers’ Choice Awards among many other awards, but in the end it was not enough to save them.

Photo byMichael DagonakisonUnsplash

On September 11th 2024 BurgerFI filed for chapter 11, following other restaurants like World of Beer and Red Lobster into the depths of debt. Like many others BurgerFi International has experienced several quarters of falling same-store sales and started the year off with a 13% decline in same-store sales at BurgerFi and 2% decline in comparable sales at sister brand Anthony’s Coal Fired Pizza & Wings. They seemed to start turning it around but still remained underwater net losses improved in 2023 to $30.7 million compared to a net loss of $103.4 million in 2022.

Photo byMichael DagonakisonUnsplash

BurgerFi International, LLC dba BurgerFi and affiliates filed for chapter 11 protection in the District of Delaware (Case No. 24-12018). The Debtor reports Assets of $50M-$100M and Liabilities of $100M-$500M. The Petition states funds will be available to Unsecured Creditors.

The troubles are not recent but really came to the public eye this past August, when Nasdaq sent the company deficiency notices regarding its failure to file its quarterly report on time which is within 45 days from the end of the quarter. This typically is a huge red flag for investors and Nasdaq also said the chain didn’t have the proper number of board members after three board directors resigned earlier that month also a really bad sign of things to come.

Legit Burgers!Photo byofficial site

For what it is worth, BurgerFi really does have a good product, so what exactly happened? The restaurant sites poor performing locations, rising food costs and a changing landscape. It is also important to note that they purchased a rising pizza chain named Anthony's Coal Fired Pizza and that is now suffering as well.

BurgerFI has even tried expanding into dessertsPhoto byofficial site

From what we gather BurgerFi has grown to own approximately 144 stores under the two brands, according to the statement. All locations will continue normal operations, although they have recently shuttered the doors on many locations and months before the bankruptcy, the brand had just opened a flagship store in New York City with hopes of dethroning Shake Shack.

Some of the usual suspectsPhoto byofficial site

The good news is the believe that they have hired the right people to navigate through chapter 11, and as we recently reported with Red Lobster the right team can lead you out into calmer waters. If you want to try this burger joint you can find the nearest location to you bychecking out their site map.